Question 1

Assuming the cost of direct materials used is $1,300,000, compute the total manufacturing costs using the information below.

Accepted Answer

A)  $2,790,000. 
B)  $2,781,000. 
C)  $2,490,000. 
D)  $3,420,000. 
A)  $2,790,000. 
B)  $2,781,000. 
C)  $2,490,000. 
D)  $3,420,000.

Question 2

Which one of the following costs would not be inventoriable?

Accepted Answer

A)  Period costs 
B)  Factory insurance costs 
C)  Indirect materials 
D)  Indirect labor costs 
A)  Period costs 
B)  Factory insurance costs 
C)  Indirect materials 
D)  Indirect labor costs

Question 3

A manager that is establishing objectives is performing which management function?

Accepted Answer

A)  Controlling 
B)  Directing 
C)  Planning 
D)  Constraining 
A)  Controlling 
B)  Directing 
C)  Planning 
D)  Constraining

Question 4

On the costs of goods manufactured schedule, depreciation on factory equipment

Accepted Answer

A)  is not listed because it is included with Depreciation Expense on the income statement. 
B)  appears in the manufacturing overhead section. 
C)  is not listed because it is not a product cost. 
D)  is not an inventoriable cost. 
A)  is not listed because it is included with Depreciation Expense on the income statement. 
B)  appears in the manufacturing overhead section. 
C)  is not listed because it is not a product cost. 
D)  is not an inventoriable cost.

Question 5

The following information is available for Elliot Company.   
Instructions
(a) Compute cost of goods manufactured.
(b) Prepare an income statement through gross profit.

Accepted Answer

The answer of The following information is available for Elliot...

Question 6

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as

Accepted Answer

A)  period costs. 
B)  nonmanufacturing costs. 
C)  selling and administrative expenses. 
D)  manufacturing overhead. 
A)  period costs. 
B)  nonmanufacturing costs. 
C)  selling and administrative expenses. 
D)  manufacturing overhead.

Question 7

The function that pertains to keeping the activities of the enterprise on track is

Accepted Answer

A)  planning. 
B)  directing. 
C)  controlling. 
D)  accounting. 
A)  planning. 
B)  directing. 
C)  controlling. 
D)  accounting.

Question 8

Which of the following is not a manufacturing cost category?

Accepted Answer

A)  Cost of goods sold 
B)  Direct materials 
C)  Direct labor 
D)  Manufacturing overhead 
A)  Cost of goods sold 
B)  Direct materials 
C)  Direct labor 
D)  Manufacturing overhead

Question 9

Using $2,240,000 as the cost of goods manufactured, compute the cost of goods sold using the following information.

Accepted Answer

A)  $2,246,000. 
B)  $2,208,000. 
C)  $2,232,000. 
D)  $2,248,000. 
A)  $2,246,000. 
B)  $2,208,000. 
C)  $2,232,000. 
D)  $2,248,000.

Question 10

Exercising good judgment in performing the managerial functions and choosing among alternative courses of action is called ______________.

Accepted Answer

The answer of Exercising good judgment in performing the managerial...

Question 11

Cost of goods manufactured in a manufacturing company is analogous to

Accepted Answer

A)  Ending inventory in a merchandising company. 
B)  Beginning inventory in a merchandising company. 
C)  Cost of goods available for sale in a merchandising company. 
D)  Cost of goods purchased in a merchandising company. 
A)  Ending inventory in a merchandising company. 
B)  Beginning inventory in a merchandising company. 
C)  Cost of goods available for sale in a merchandising company. 
D)  Cost of goods purchased in a merchandising company.

Question 12

Presented below is a list of costs and expenses incurred in the factory by Nu-Way Corporation, a manufacturer of recreational vehicles.
____ 1. Property taxes on the factory land
____ 2. Nails and glue used in production
____ 3. Cabinet maker's wages
____ 4. Factory supervisors' salaries
____ 5. Metal used in manufacturing
____ 6. Depreciation on factory machines
____ 7. Factory utilities
____ 8. Carpeting for the recreational vehicles
____ 9. Property taxes on the factory building
____ 10. Insurance on factory equipment
Instructions
Classify the above items into the following categories:
DM - Direct Materials
DL - Direct Labor
MO - Manufacturing Overhead

Accepted Answer

1. MO 6. MO
2. MO 7.

Question 13

Presented below are incomplete 2010 manufacturing cost data for Tardy Corporation.   
Instructions
Determine the missing amounts.

Accepted Answer

The answer of Presented below are incomplete 2010 manufacturing cost...

Question 14

Laflin Manufacturing Company reported the following year-end information:   Laflin Manufacturing Company's cost of goods manufactured for the year is

Accepted Answer

A)  $2,400,000. 
B)  $2,580,000. 
C)  $2,220,000. 
D)  $2,760,000. 
A)  $2,400,000. 
B)  $2,580,000. 
C)  $2,220,000. 
D)  $2,760,000.

Question 15

What term describes all activities associated with providing a product or service?

Accepted Answer

A)  The manufacturing chain 
B)  The product chain 
C)  The supply chain 
D)  The value chain 
A)  The manufacturing chain 
B)  The product chain 
C)  The supply chain 
D)  The value chain

Question 16

A major difference between the income statements of a merchandising company and a manufacturing company is that the cost of goods sold section of a merchandising company shows cost of goods______________, whereas a manufacturing company shows cost of goods ______________.

Accepted Answer

purchased,

Question 17

Assuming that the total manufacturing costs are $2,700,000, compute the cost of goods manufactured using the information below.

Accepted Answer

A)  $2,688,000. 
B)  $2,691,000. 
C)  $2,709,000. 
D)  $2,712,000. 
A)  $2,688,000. 
B)  $2,691,000. 
C)  $2,709,000. 
D)  $2,712,000.

Question 18

Managerial accounting information is generally prepared for

Accepted Answer

A)  stockholders. 
B)  creditors. 
C)  managers. 
D)  regulatory agencies. 
A)  stockholders. 
B)  creditors. 
C)  managers. 
D)  regulatory agencies.

Question 19

The inventory accounts that show the cost of completed goods on hand and the costs applicable to production that is only partially completed are, respectively

Accepted Answer

A)  Work in Process Inventory and Raw Materials Inventory. 
B)  Finished Goods Inventory and Raw Materials Inventory. 
C)  Finished Goods Inventory and Work in Process Inventory. 
D)  Raw Materials Inventory and Work in Process Inventory. 
A)  Work in Process Inventory and Raw Materials Inventory. 
B)  Finished Goods Inventory and Raw Materials Inventory. 
C)  Finished Goods Inventory and Work in Process Inventory. 
D)  Raw Materials Inventory and Work in Process Inventory.

Question 20

The sum of the direct materials costs, direct labor costs, and manufacturing overhead incurred is the

Accepted Answer

A)  cost of goods manufactured. 
B)  total manufacturing overhead. 
C)  total manufacturing costs. 
D)  total cost of work in process. 
A)  cost of goods manufactured. 
B)  total manufacturing overhead. 
C)  total manufacturing costs. 
D)  total cost of work in process.

Exam 19: Managerial Accounting

Assuming the cost of direct materials used is $1,300,000, compute the total manufacturing costs using the information below.

Which one of the following costs would not be inventoriable?

A manager that is establishing objectives is performing which management function?

On the costs of goods manufactured schedule, depreciation on factory equipment

The following information is available for Elliot Company. Instructions (a) Compute cost of goods manufactured. (b) Prepare an income statement through gross profit.

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as

The function that pertains to keeping the activities of the enterprise on track is

Which of the following is not a manufacturing cost category?

Using $2,240,000 as the cost of goods manufactured, compute the cost of goods sold using the following information.

Exercising good judgment in performing the managerial functions and choosing among alternative courses of action is called ______________.

Cost of goods manufactured in a manufacturing company is analogous to

Presented below are incomplete 2010 manufacturing cost data for Tardy Corporation. Instructions Determine the missing amounts.

Laflin Manufacturing Company reported the following year-end information: Laflin Manufacturing Company's cost of goods manufactured for the year is

What term describes all activities associated with providing a product or service?

A major difference between the income statements of a merchandising company and a manufacturing company is that the cost of goods sold section of a merchandising company shows cost of goods______________, whereas a manufacturing company shows cost of goods ______________.

Assuming that the total manufacturing costs are $2,700,000, compute the cost of goods manufactured using the information below.

Managerial accounting information is generally prepared for

The inventory accounts that show the cost of completed goods on hand and the costs applicable to production that is only partially completed are, respectively

The sum of the direct materials costs, direct labor costs, and manufacturing overhead incurred is the

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Analysis: the Big Picture

Job Order Costing

Process Costing

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Filters

A major difference between the income statements of a merchandising company and a manufacturing company is that the cost of goods sold section of a merchandising company shows cost of goods, whereas a manufacturing company shows cost of goods .